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Coles lift prices of reusable bags by 20% as shoppers fume
Supermarket giant Coles has increased the cost of some of its reusable shopping bags, despite posting a $1.09 billion profit months earlier.
- Coles has increased the prices of some of its reusable shopping bags, leaving shoppers upset amid a cost-of-living crisis.
- The supermarket’s paper bags will increase from 25c to 30c, while its larger insulated bags will increase from $4 to $4.20.
- Shoppers are upset at the change, in light of the supermarket giant posting a $1.09 billion full-year net profit in August.
Supermarket giant Coles has raised the price of several reusable shopping bags, drawing shoppers’ ire amid a cost-of-living crisis.
The cost of its folded paper bags has increased from 25c to 30c, while its larger, insulated chiller bags have increased in price from $4 to $4.20.
Coles told The Money Edition that it needed to raise prices because of the overheads associated with supplying the bags.
“We recently made some changes to the price of selected bags.
We know value remains important to our customers and we’ve worked to keep these increases as low as possible,” a spokesperson said.
“Unfortunately, from time to time, prices of individual products may need to increase due to changes in costs such as materials and transport.
“Customers can continue to bring their own reusable bags when shopping at Coles, and we encourage them to reuse bags wherever possible.”
The flat fee for bags for orders made to Coles online will remain unchanged at $2.
Several shoppers took to social media to express their outrage at the near 20 per cent increase.
“I popped into Coles today on the way home from an appointment and didn’t have a bag with me. When did the brown paper bags that you have to carry from the bottom so the handles don’t break, go from 25 cents to 30 cents?” one wrote.
“Back in the 70s and 80s brown paper bags were used in all supermarkets – and they were free. Just another grab for money,” another wrote.
The price increase comes two months after Coles released its full year results, delivering $1.09 billion net profit after tax, up 1 per cent on the same time last year.
Bag price hike comes amid new price-gouging laws
The new prices come as the government tries to regulate perceived price-gouging practices in the supermarket industry, dominated in Australia by the duopoly of Coles and Woolworths.
The government passed legislation that, from July 1 this year, made it illegal for retailers to artificially inflate prices above reasonable profit margins.
“These changes protect Australian families from artificially inflated prices on their groceries,” said Assistant Minister for Competition Andrew Leigh.
“It will be illegal for very large retailers such as Coles and Woolworths to charge prices that are excessive, when compared to the cost of supply plus a reasonable margin.”
The Australian Competition and Consumer Commission (ACCC) will enforce the new laws and has the power to fine retailers up to 10 per cent of their annual turnover if found in breach of the new laws.
The Money Edition has contacted Woolworths and Aldi for comment.
Topics: Coles, Cost of Living, Grocery costs, Supermarkets